As we embark on a new year, there's no better time to take control of your financial future by thoroughly reviewing your cash flow. If having a vision and establishing goals is the touchstone for a financial plan, this essential financial practice sets the foundation for achieving your goals and ensuring long-term financial stability.
Anyone who has gone through a divorce knows how emotionally challenging and financially complex it can be. While attorneys handle the legal aspects, a Certified Divorce Financial Analyst® focuses specifically on the financial implications of divorce. This specialized designation equips professionals with the expertise to guide clients through the intricate financial aspects of divorce proceedings, ensuring better outcomes for their financial future.
Anna Marie Mock, a fee-only certified financial planner at Highland Financial Advisors, discusses the dynamic interplay between art and science in financial planning. Drawing inspiration from Leonardo da Vinci's philosophy that "everything connects to everything else," she emphasizes that financial planning is an art involving subjective goal-setting and a science-driven by objective analysis tools. In this video, Anna explains how the scientific method can be applied to financial planning, using equity compensation as a concrete example.
What are your thoughts, feelings, and beliefs about money? What about your partner, and do they differ from your own? Sometimes, the conflict we experience around money in our personal lives can be attributed to incongruent money scripts with those with whom we share finances. Let’s dive into the term money script and how understanding it can help us achieve our financial goals.
Old ways of tracking finances included using a pen and paper combined with envelopes to “bucket” different spending needs. Then came along Excel, where people began using spreadsheets to keep their budget and spending. Today, we have apps available on our phones with software to create the budget for you and even track each transaction on your credit card.
Gap years are no longer just for recent graduates but are now for seniors who may not have had the time to pursue their passions or try something new during their working years. For many retirees coming from a work-centric culture, retirement may feel like crossing the finish line, followed by winding down and boredom.
When it comes to investing and managing your finances, many people wouldn’t think that the skills and mindset needed for success would be similar to the skills and attitude necessary for success with martial arts. However, I have come to realize that investing and practicing Brazilian Jiu-Jitsu, a type of Mixed Martial Art (MMA), have much more in common than one would think. Both require similar skills and disciplines to be successful.
The recent release of the American Families Plan marks the third part of President Biden's Build Back Better Initiative. Several proposals make up this plan, but it is important to note that they are just proposals at this point and will have to make their way through Congress, where legislators will undoubtedly modify many of the provisions.
Financial elder abuse involves family members, caregivers, or professionals that illegally exploit an older individual for their monetary assets and property for their financial gain. It is estimated that elder financial abuse costs older Americans upwards of $36 billion. According to the National Council On Aging, 1 in 10 Americans aged 60+ have experienced some form of abuse, but only 1 in 14 cases are estimated to be reported to authorities.
For many people utilizing a Roth IRA to help save for retirement, they enjoy the benefits of tax-free growth and tax-free withdrawals after the age of 59 ½. An additional advantage of the Roth IRA, in contrast to a Traditional IRA, is that you are not required to take minimum withdrawals at age 72, enabling the account to continue to grow tax-free.
In 2019, HIGHLAND instituted the sabbatical benefit for each employee to take a month off and detach from work every seven years. I was due to take the first sabbatical in 2020, but due to COVID19, I postponed it to 2021. From February 20th to March 20th, I took a one-month sabbatical from work. My wife and I rented a place on the beach on the west coast of Florida.
With President Biden signing the American Rescue Plan legislation into law last week, here is a high-level look at some of the bill's main provisions. There are many nuances to each of the major points highlighted, and this article only scratches the surface. As always, it is wise to consult with your financial advisor and tax professional to determine what you qualify for depending on your specific situation.
As world economies continue to grow and evolve, it is becoming increasingly evident that China is playing a larger role in that growth. Some projections have China's GDP reaching $64 trillion by 2030, up from $14 trillion in 2019. By almost any measure, the Chinese economy is experiencing expansion that will likely continue in the decade to come. Still, it also has unique headwinds that it will need to overcome as well.
With the news this week of Elon Musk investing $1.5 billion into bitcoin, along with Mastercard and Bank of New York announcing they will be supporting cryptocurrency on their networks, digital currencies have been getting a lot of attention. For those new to the altcoin world, it helps to understand the basics.
Federal student loans are efficient forms of debt because the interest is tax-deductible, and the interest rates are relatively low compared to other forms of debt like credit cards. In addition, student loans are designed as an investment in yourself and provide the ability to earn more through your human capital in the future.
In the past, we have discussed the benefit of a Health Savings Account or HSA. As a refresher, HSAs are designed for an individual or family to save pre-tax money up to the annual limits for either short-term medical expenses or long-term retirement planning.
With the election results in Georgia, President Biden will have a majority in both the House and Senate. Half the country may be excited about this, and about half the country may be in a panic. As an investment advisory firm, we want you to understand the facts and make decisions in your best interest. Far too often, we see people make short-term decisions based on a perception of something rather than a prudent judgment based on facts.
With the start of the new year, those who have auto leases coming due will be contemplating which new set of wheels to drive off the lot. While enjoying a new vehicle is the fun part, knowing whether you got a good deal on your lease is often less so. However, just by arming yourself with some basic knowledge of how automobile leasing works, you can significantly improve your odds of not signing an unfavorable contract.
Estate planning can be a morbid topic, and most want to avoid thinking about it. However, reviewing your estate documents not only ensures your financial legacy is passed in accordance with your legacy plan as smoothly as possible but guides your agent to address your medical and financial wishes. But what about leaving more than just a financial legacy?
Arthur Conan Doyle, the author of Sherlock Holmes, said, "It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts." Doyle's observation was over eighty years before the development of 24-hour cable news and the internet.
For someone saving toward retirement, one of the most fundamental questions is, “How much of my preretirement income will need to be replaced once I am no longer working?”. Determining an accurate answer to this question is essential because it is directly linked to another critical question, which is, “How much should I be saving?”. Using a one size fits all approach to answering these questions could be detrimental to your financial plan since everyone’s situation is unique.
